Zagreb - HDZ MPs on Thursday commended the government's proposal to increase the annual non-taxable receipts of dependents from HRK 15,000 to HRK 24,000, and the opposition also supported it, but noted that the increase was not sufficient considering inflation and proposed that they be increased to HRK 30,000.
It is good that the amount has been increased but we suggest that due to inflation, the amount should be raised to HRK 30,000 and not HRK 24,000, Emil Daus of the IDS said ahead of the parliamentary debate on amendments to the Income Tax Act.
Vesna Vučemilović (Sovereignists) also welcomed the proposed increase but noted that the entire Croatian tax system is deeply unfair.
The state budget is mostly filled with VAT, which is the most unfair tax because it is equally paid by a woman with a pension of HRK 1,500 and someone with a salary of HRK 20,000-30,000, said Vučemilović, stressing that it is necessary to introduce a tax that will be fairer.
When it comes to VAT, Daus believes that it is time to consider the idea of leaving one percent of the VAT collected to municipalities, cities and counties, even if a portion of it were to be used for a specific purpose.
Grbin: Increase non-taxable income from HRK 4,000 to HRK 5,000
The leader of the Social Democratic Party (SDP), Peđa Grbin, said that the proposed bill was an opportunity for the government to do something that would benefit citizens, but it failed to do so. He announced that the SDP would continue to insist on the proposal to increase the non-taxable income from HRK 4,000 to HRK 5,000.
We are losing the battle with inflation, and by increasing the non-taxable income, we would help people cope better with inflation, he added.
Božo Petrov (Bridge) underscored that the Income Tax Act is the best tool that gives citizens the opportunity to have higher monthly incomes and be able to deal with crises more easily. "We have one such crisis today. Prices of basic foodstuffs have gone up by more than 30, 40 percent and utility bills in some areas have increased by as much as 300%. In such circumstances it is not the time for cosmetic changes," he said.
HDZ MP: Another govt intervention in tax system for benefit of citizens
HDZ MP Marin Mandarić commended the government's bill, saying it was yet another intervention in the tax system for the benefit of citizens. The government has recognised the needs and is raising the non-taxable thresholds, he said.